Mr. Speaker, the leader of the Liberal Party is talking about tax credits that his party voted against. These are important measures for Canadian families. Other measures that are important to job creation, the business community and SMEs are now before this House. I encourage the Liberal Party to reverse its position and support these tax credits, which are very important for the Canadian economy.

Mr. Speaker, the Prime Minister's position with respect to the Wheat Board becomes even less understandable when the American ambassador announced today at lunch that there would be no change in buy America and that buy America would be the policy there.

We have a thickening of the border, a continuing attack on the marine tax and other continuing attacks on the Canadian economy and the Prime Minister at this moment decides to make the biggest, single, unilateral trade concession it could make, this by a government that has been trying to get rid of the Wheat Board for 15 years.

Mr. Speaker, the logic of the Liberal Party, judging from that question, is that, because the Americans want to buy certain products in the United States, we should not allow Canadian farmers to sell their own products.

The Liberal Party should ask itself why it does not have a single representative whose riding is predominantly in rural western Canada. It is because it does not listen to western farmers. This is something western farmers have been needing and demanding for decades, and that day is finally here.

Mr. Speaker, a group of experts has said that $3 billion is handed out every year in tax credits for research and development and that this does not have any significant impact on economic growth and business development. Yet the government continues to provide ineffective tax credits.

Will this government recognize that it would be better off creating a plan to help businesses innovate and create jobs?

Gary GoodyearMinister of State (Science and Technology) (Federal Economic Development Agency for Southern Ontario)

Mr. Speaker, our government is focused on encouraging businesses to do more research and development because not only will that help the business itself but it will create more jobs for Canadians, and that is what we want.

We did launch a panel to review our programs to see how we could make them better to get more results for Canadians. This is very important to Canadians so we will look at the report and consider all the recommendations quite seriously.

Mr. Speaker, according to The Globe and Mail, nearly one-third of funds allocated to research and development is used to pay consultants, because the claims process is extremely complicated. These billions of dollars are also used to review claims that are questionable or even misleading.

When will this government come up with a plan to create innovative jobs instead of lining the pockets of consultants?

Gary GoodyearMinister of State (Science and Technology) (Federal Economic Development Agency for Southern Ontario)

Mr. Speaker, that is exactly why we launched the panel.

If we can get businesses to do more research and development, develop new products or a new process on which they make a product now, or perhaps find a new market for existing products, that will create high-paying, high-value jobs for Canadians. That will improve the quality of living for Canadians. That is what the government wants. That is why we are looking at the panel.

Last night, the NDP voted against improving the quality of life for Canadians.

Mr. Speaker, the Jenkins report released yesterday confirmed that this government's innovation strategy in its research and development support policy is a failure. This government is the worst performer among major industrialized countries as far as direct public investment in research and development is concerned. This government is a laggard in terms of the number of patents issued. It is ranked last in terms of the number of doctoral graduates and is among the worst performers when it comes to businesses' financial contribution to research and development.

What is the government going to do to finally address this pitiful situation?

Gary GoodyearMinister of State (Science and Technology) (Federal Economic Development Agency for Southern Ontario)

Mr. Speaker, as I just mentioned, we did launch an R and D panel to review all of the government's programs that encourage small and large businesses to do more research and development. The panel reported yesterday. It is a great report. We are looking at it. It is a very serious issue for Canadians. We will give it serious consideration.

We will improve the quality of life of Canadians because that is what we on this side of the House want.

Mr. Speaker, on this side of the House, we believe in research and development and sound industrial policy. On that side of the House, the facts speak for themselves.

The government has failed on patent development. It has failed on supporting PhDs. It t is pouring billions into blind corporate tax cuts and costly tax credits that have failed to stimulate research and development. Canada is last in direct R and D public investment among all industrialized countries.

Will the government commit now to increasing direct R and D public investment? We have said it. The reports are saying it. When will the government do the right thing?

Mr. Speaker, we are increasingly concerned that the government is selling out Canadians in order to push through a flawed deal with Europe. However, members should not take our word for it. I will quote Anna Robasch, a Danish member of the European parliament, who said, “At the moment Europe will be able to export more than what Canada will be exporting”.

When will the government admit that it is losing out in these negotiations and start putting the interests of Canadians first?

Gerald KeddyParliamentary Secretary to the Minister of International Trade

Mr. Speaker, that question only proves once again that the NDP is ideologically opposed to free trade.

On our side of the House, we welcome the ninth round of negotiations as the benefits to Canadian workers and businesses through a free trade agreement with the EU are expected to be enormous: a 20% boost in bilateral trade; a $12 billion annual boost to Canada's economy; 80,000 new jobs for Canadian workers; and $1,000 average extra income for Canadian families.

Mr. Speaker, the problem is that the minister and the government cannot see because of their rose-coloured glasses.

We need some straight talk on the impacts of this deal. European officials are quite happy to tell us what is going on. One European official boasted that Europe stands to gain while Canada loses. He said, “there will be some losers, there are always losers”.

Why is the government content with this loser status? Why will the government not start giving the straight goods to Canadians and stand up for them?

Gerald KeddyParliamentary Secretary to the Minister of International Trade

Mr. Speaker, there was some chattering across the way and I did not hear the end of the question but I will give what I expect the member is looking for as an answer.

Some hon. members may not have realized it but we received a strong mandate from Canadians, which is why we have a majority government and why we are pursuing free trade agreements that will benefit Canadians, benefit Canadian workers and supply Canadian jobs to Canadians who need those jobs.